Hedging with Futures in an Intertemporal Portfolio Context PDF Download

Author: Michael Adler
Publisher:
ISBN:
Category : Commodity exchanges
Languages : en
Pages : 56

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Author: Michael Adler
Publisher:
ISBN:
Category : Financial futures
Languages : en
Pages : 33

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Author: Marco Scheidler
Publisher: GRIN Verlag
ISBN: 3638400794
Category : Business & Economics
Languages : en
Pages : 28

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Seminar paper from the year 2003 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, grade: A, Wright State University (Raj Soin College of Business), language: English, abstract: Abstract Undertaking business always involves taking risk. The future development of a company and their business is more uncertain the higher the risk that the company is facing. Risk management is a important factor in operating business. With the development of future markets entrepreneurs and investors obtained another risk management tool that made it possible to reduce risk. Futures are derivatives that can be used either for speculating or risk management. Especially in the area of financial futures, a rapid growth could be observed during the last few decades. Almost every month a new type of contract appears to meet the needs of a continuously growing corporate and institutional market. This paper considers future contracts as hedging application to reduce price risk. Futures are standardized contracts to buy or sell an asset in the future. There are various types of futures which differ in the type of the underlying asset. Futures are traded at organized exchanges. We consider the trading of future, their requirements, and market participants and their motivation. Different commercial users of future contracts hedge in different ways. A long hedge is used to reduce price risk of an anticipated purchase whereas a short hedge reduces the price risk of an asset that is already held. If there is no exact, the hedgers needs matching, contract available, the hedger should use a cross hedging strategy. With all these strategies the hedger takes, to the asset opposite, a position in the future market that is highly correlated with the change in price of the asset in the spot market. Losses in one market are offset by gains in the other market. For a successful hedge it is essential to choose an appropriate contract and hedge ratio. Faults can result in losses. The example of hedging a stock portfolio shows the application of an index future and presents the behavior of the hedged portfolio in different scenarios of stock market development.

Author: Abraham Lioui
Publisher: Springer Science & Business Media
ISBN: 9780387241074
Category : Business & Economics
Languages : en
Pages : 290

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This is an advanced text on the theory of forward and futures markets which aims at providing readers with a comprehensive knowledge of how prices are established and evolve over time, what optimal strategies one can expect from the participants, what characterizes such markets and what major theoretical and practical differences distinguish futures from forward contracts. It should be of interest to students (majoring in finance with quantitative skills) academics (both theoreticians and empiricists), practitioners, and regulators.

Author: Henri Loubergé
Publisher: Springer Science & Business Media
ISBN: 9400918267
Category : Business & Economics
Languages : en
Pages : 139

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Book Description
Financial Risk and Derivatives provides an excellent illustration of the links that have developed in recent years between the theory of finance on one hand and insurance economics and actuarial science on the other. Advances in contingent claims analysis and developments in the academic and practical literature dealing with the management of financial risks reflect the close relationships between insurance and innovations in finance. The book represents an overview of the present state of the art in theoretical research dealing with financial issues of significance for insurance science. It will hopefully provide an impetus to further developments in applied insurance research.

Author: Stavros A. Zenios
Publisher: Cambridge University Press
ISBN: 9780521577779
Category : Business & Economics
Languages : en
Pages : 374

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The use of formal mathematical models and optimization in finance has become common practice in the 1980s and 1990s. This book clearly presents the exciting symbiosis between the fields of finance and management science/operations research. Prominent researchers present the state of the art in financial optimization, while analysts from industry discuss the latest business techniques practised by financial firms in New York, London and Tokyo. The book covers a wide range of topics: portfolio management of equities and fixed income investments, the pricing of complex insurance, mortgage and other asset-backed products, and models for risk-management and diversification.

Author: William A. Barnett
Publisher: Emerald Group Publishing
ISBN: 1789732735
Category : Business & Economics
Languages : en
Pages : 344

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This volume of The International Symposia in Economic Theory and Econometrics explores and investigates contemporary challenges and issues facing the Asia-Pacific economies. For researchers and students of economics and finance, this volume is a fascinating exploration of emerging topics in one the fastest growing economies in the world.

Author:
Publisher:
ISBN:
Category : Electronic journals
Languages : en
Pages : 686

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Earlier place of publication varies.

Author:
Publisher:
ISBN:
Category : Commodity exchanges
Languages : en
Pages : 744

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Consists of the proceedings of seminars on futures markets held by the Chicago Board of Trade.

Author:
Publisher:
ISBN:
Category : Econometrics
Languages : en
Pages : 1096

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